Fitch Rates Lincoln National Corp.'s Preferred Stock Issuance 'BB+'

CHICAGO--(Business Wire)--
Fitch Ratings has assigned Lincoln National Corporation's (LNC) $950 million
issuance of fixed rate cumulative perpetual preferred stock under the U.S.
Treasury's Capital Purchase Program (CPP) a rating of 'BB+' with a Negative
Rating Outlook.

LNC announced a series of capital raising initiatives in a press release on June
15, 2009. The capital raising initiatives included the issuance of $600 million
in new common equity, up to $500 million in new senior unsecured debt, and
approximately $950 million in new preferred stock issued under the CPP. The
announcement today that it has entered into a letter agreement with the U.S.
Treasury and issued and sold the preferred stock for $950 million in cash
completes the previously announced initiatives.

While LNC continues to face considerable challenges, primarily related to the
impact capital market turmoil has had on the company's capital position and
operating performance, Fitch takes a positive view of initiatives management has
taken thus far to bolster capital and adjust to the current uncertain operating
environment. Fitch believes that these initiatives have enhanced near-term
financial flexibility in a period of challenging capital markets access and
could ultimately help stabilize ratings. However, Fitch expects the effect of
the ongoing recession and capital market turmoil to continue to pressure LNC and
its peers, and the company's ratings are being affirmed at their current levels
to reflect these ongoing risks.

The Negative Outlook for LNC's ratings reflects Fitch's view that near-term
adverse financial market and recessionary economic conditions will likely
continue for an extended period. As a result, Fitch believes LNC could
experience higher-than-expected volatility in financial results and capital.

Fitch's ratings on LNC are supported by the company's longstanding strong
competitive position in the life insurance and annuity market, strong and
diverse distribution network, strong management team and historically solid
operating performance. These positives are tempered somewhat by the current weak
economic and capital market conditions, as well as challenges LNC faces with
respect to strong competition in the life insurance and asset accumulation
sectors, particularly in the affluent market segment that LNC has targeted, and
the degree to which the company's earnings continue to be leveraged to the
equity markets.

Lincoln National Corp., headquartered in Radnor, PA, markets a broad range of
insurance and asset accumulation products and financial advisory services
primarily to the affluent market segment. On March 31, 2009, the company
reported consolidated assets of $157.4 billion and common equity of $7.3
billion.

Fitch rates LNC's issuance 'BB+' with a Negative Outlook as follows:

--$950 million cumulative perpetual preferred stock.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Bradley S. Ellis, CFA, +1-312-368-2089
Julie A. Burke, CPA, CFA, +1-312-368-3158
Brian Bertsch, +1-212-908-0549
(Media Relations, New York)
brian.bertsch@fitchratings.com

Copyright Business Wire 2009